Amkor's Arizona Expansion: $2 Billion Bet on U.S. Semiconductor Leadership

2025-12-31 09:26:26

Semiconductor packaging leader Amkor has unveiled a major shift in its U.S. manufacturing strategy, revealing plans to construct an advanced packaging and test facility in Peoria, Arizona. The move marks a significant milestone for the company’s domestic operations and the broader effort to strengthen America’s semiconductor supply chain.

The Scale of Investment and Impact

The new facility will span 104 acres within the Peoria Innovation Core in north Peoria. According to the announcement, the project represents a $2 billion investment and is expected to create 2,000 jobs for the local community. Construction begins in the coming days, with production ramping up in early 2028. Peoria’s City Council unanimously approved the necessary land swap and development agreement, clearing the way for this expansion.

Strategic Location and Industry Positioning

Peoria’s growing semiconductor ecosystem provides the ideal setting for Amkor’s expansion. The facility will focus on advanced packaging and test services, catering to multiple high-demand sectors including computing, communications, and automotive applications. The location also positions Amkor to collaborate more closely with other key players in the semiconductor value chain, such as TSMC, strengthening regional manufacturing capabilities.

Why This Matters

As the U.S. headquarters of one of the world’s largest outsourced semiconductor assembly and test (OSAT) service providers, Amkor’s investment reflects growing confidence in domestic chip manufacturing. The company, which has maintained operations in the Greater Phoenix area since 1984, continues to demonstrate long-term commitment to U.S.-based production. With offerings spanning advanced packaging, wafer-level processing, and system-in-package solutions for applications ranging from smartphones to data centers and AI systems, Amkor’s expanded capacity will help reduce supply chain vulnerabilities and support emerging technology demands.

The Peoria project exemplifies the broader trend of nearshoring semiconductor manufacturing, strengthening the competitive position of U.S.-based companies in critical electronics markets.

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